In the previous session, The Nifty Index closed with a net loss of 120 points. It’s been the 3rd day in a row when we have seen losses in the market. Prices have been constantly forming bearish candles and moving in lower highs and lower lows formation. If we look from an immediate short-term angle, the index is placed at a crucial level and there are two possibilities either break below or reversed from the same level. Hence a cautious and stock specific approach is advisable for the next trading day.
Look at the below research report of ‘Stocks to Buy for – Thursday, July 22, 2021’ before the market opens.
NSE :HAVELLS BSE :517354 Sector : Capital Goods – Electrical Equipment
In the daily time frame, Havells India Ltd share prices are moving in a well channelized manner. Also, we can see that stock formed a ‘Double Bottom pattern’ inside the Channel and closed above the neckline of the pattern. In the last trading session, Stock formed a Hammer candle with a long lower shadow on the chart and closed with a net gain of 1.28%. This can be a crucial level as Hammer candle is found in the middle of the trend which is not a favourable level but if price breaks above previous days high then it will be a good opportunity to buy the stock.
We have applied Donchian Channel on the chart, which is used for identifying the breakout of a stock that helps the traders to take either long or short positions. In the above chart stock prices are trading near the Upper line of Donchian Channel. If the price goes above the upper line with a positive candle, then it is a signal to make a long position.
In short, the outlook for Havells will remain positive. Now a move above 1110 will confirm the uptrend and prices can move higher levels towards 1167 levels. This outlook is valid as long as we do not see any closing below 1060 support.
Check More Analysis on Havells at: Havells India Ltd